EMMA ALBERICI, PRESENTER: Here is some breaking news about the future of Holden's car making operations in Australia. The ABC understands that senior ministers believe Holden has decided to quit the country after 65 years of mass production. For more on this story, we cross to the ABC's Chris Uhlmann in Canberra.

Chris, what can you tell us about this decision?

CHRIS UHLMANN, REPORTER: Well, Emma, the ABC's spoken to several senior Government figures and all of them are convinced that Holden has already made a decision that it will quit Australia and that it could close its doors as early as 2016. Now of course, if that did happen, that would be a hammer blow to the local car manufacturing industry because after Holden, of course, only Toyota is left. 1,700 jobs are attached to Holden in South Australia, but a lot more in the knock-on effect - up to 45,000 to 50,000 jobs across Australia. And of course, in the end, that would be the concern about the possibility of Holden leaving here, apart from which of course it is an Australian icon and would be a real blow to the nation if it were to go.

EMMA ALBERICI: And you'd have to question the sustainability of Toyota's operations if the other two fell.

CHRIS UHLMANN: That's right, because the component manufacturing industries of course hang off the end of this as well. So Toyota as the last company standing, it would also be under threat.

EMMA ALBERICI: So what are Holden and the Government saying about this tonight?

CHRIS UHLMANN: Well Holden says that it does not comment on speculation and it will be participating in the Productivity Commission hearings, which are continuing and will be wrapped up in March. Interestingly, the Industry Minister Ian Macfarlane says that what his colleagues are saying is not his understanding, that he has been in touch with Holden and Holden has assured him that no decision has been made and in fact that the next time the board would discuss this would be in January and that no decision would be made until then.

So there are some fascinating dynamics that are going on inside the Abbott Government at the moment. There are some who believe, of course, that this is a sign that there are people within the Coalition who don't want any more assistance going to the car industry and that they are determined that no more will.

EMMA ALBERICI: So, Chris, how do you see the politics playing out here, given obviously the economics seem a little clearer about the implications of Holden pulling out? What are the politics at play?

CHRIS UHLMANN: Well certainly there's a very vibrant policy discussion going on about car industry assistance inside the Abbott Government at the moment. The Industry Minister is undoubtedly doing everything he can to make sure that this industry does continue in Australia. I think that people who are opposed to giving more assistance to the car industry aren't doing it because they want to see the industry shut down; they want to see it stand on its own two feet and not need any more government assistance. So it's certainly a big policy fight. But I will say that the people who've spoken to the ABC inside government, senior figures, are all convinced that Holden has made up its mind and that it will go.

EMMA ALBERICI: And does that mean Holden has said to them they're not interested in a bailout? They're not interested in negotiations that might lead to some kind of agreement for them to stay a little longer at least?

CHRIS UHLMANN: That's certainly been the suggestion of one person who spoke to the ABC, but of course we can't speak for Holden and what they've spoken to - what they've said to individuals.

EMMA ALBERICI: Alright. Chris Uhlmann there in Canberra, thanks very much for that.